Pakistan will manage to raise the roughly $34 billion it expects to need in external financing in the 2023 financial year, Finance Minister Ishaq Dar said on Wednesday, after a credit rating agency this month downgraded it citing external vulnerability risks.

Pakistan's economy, already in turmoil, has been badly hit by devastating floods this monsoon season which are estimated to have caused over $30 billions in losses.

Moody's cut Pakistan's sovereign credit rating on October 6 by one notch to Caa1 from B3, citing increased government liquidity and external vulnerability risks following the floods, in a move strongly contested by the government.

Read: Where does Pakistan's economy go from here?

“There is no need to be nervous, Pakistan will not default,” Dar said at a conference in Islamabad.

“The total (borrowing) requirement for the current fiscal year is about $32-34 billion. You will have $22 billion liabilities due to the multilaterals, and roughly $12 billion deficit,” Dar said.

“We can, God willing, manage that,” he said.

“I assure you don't need to worry. We will get that,” Dar added.

Last week, Dar attended the annual meetings of the International Monetary Fund (IMF) and World Bank in Washington, where he also met credit rating agencies and US administration officials.

He reiterated on Wednesday that Pakistan would not seek a debt restructuring from the Paris Club of rich countries.

He also said his country would repay a Eurobond worth $1 billion Eurobond that matures later this year.

“I strongly believe that we should meet all sovereign commitments,” he said.